Glassnode Sees Bitcoin BTC/USD Consolidation as Promising Sign of Strength

On-chain analytics platform Glassnode sees the Bitcoin BTC/USD consolidation near its all-time high and Ethereum‘s ETH/USD ETF-induced surge as promising signs of strength.

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are displaying promising signs of strength, according to on-chain analytics platform Glassnode.

In its latest newsletter, titled “The Calm Bull,” the firm highlights Bitcoin’s stabilization just below its all-time high, sparking renewed interest from long-term investors who began accumulating coins again in December.

After reaching highs of $71,000 on May 20, Bitcoin has undergone a significant recovery from its early 2024 lows. The market dynamics are showing a pattern similar to the 2015-2017 bull market, which was largely spot-driven.

Bitcoin registered gains of 3.3% (weekly), 7.4% (monthly), and 25.6% (quarterly). Bitcoin ETFs saw a return to positive net flows ($242 million/day) following a period of outflows in April, indicating demand from traditional finance.

As prices corrected and consolidated, creating a strong foundation for future price movements, long-term holders resumed accumulation.

Ethereum has also shown resilience, with corrections shallower compared to previous cycles. Following the FTX lows, the SEC’s unexpected approval of Ethereum Spot ETFs led to a 20% price rally, bolstering market confidence.

This approval could serve as a catalyst to improve the ETH/BTC ratio, which has underperformed other crypto assets over the past two years.

With the approval of Ethereum spot ETFs, significant buy-side pressure was evident, marking the first time since late 2021 that a price movement of over 20% was observed.

Bitcoin’s Current Market PhaseResembling the early bull market stage, around 93.4% of Bitcoin supply is held in profit, indicating a “Pre-Euphoria” phase.

According to the newsletter, this phase often leads to investors taking profits, eventually transitioning into the “Euphoria” phase, which is characterized by constant price discovery and all-time highs (ATHs).

During Bitcoin’s March rally to $73,000, LTHs showed high sell pressure, but they have since re-accumulated. Despite the recent halving, the market remains strong, with institutional buying pressure through ETFs possibly outweighing the natural sell pressure.